Four way equivalence model and Interbank Funds Transfer System: Difference between pages

Revision as of 13:55, 30 August 2016

(IFTS).

A funds transfer system in which most (or all) direct participants are credit institutions.

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-A model that proposes a number of related conceptual linkages between differences in:
+(IFTS).
-(i) Interest rates;
+A funds transfer system in which most (or all) direct participants are credit institutions.
-(ii) Spot and forward foreign exchange rates;
-(iii) Expected inflation rates;  and
-(iv) The expected change in spot foreign exchange rates.
-The related individual linking theories are:
-#Interest rate parity theory - linking interest rates & spot and forward foreign exchange rates.
-#The Fisher Effect - linking interest rates with expected inflation rates.
-#Expectations theory - forward foreign exchange rates and future out-turn spot foreign exchange rates.
-#The International Fisher Effect - interest rate differentials and expected change in spot foreign exchange rates.
-#Purchasing power parity theory - inflation rate differentials and expected change in spot foreign exchange rates.
 == See also ==
-* [[Expectations theory]]
+* [[Caps]]
-* [[Fisher Effect]]
+* [[Clearing House Interbank Payment System]]
-* [[Interest rate parity]]
+* [[Direct participant in an IFTS]]
-* [[International Fisher Effect]]
+* [[Funds transfer system]]
-* [[Purchasing power parity]]
+* [[Indirect participant in an IFTS]]
+* [[Payment system]]
+* [[Remote access to an IFTS]]
+* [[Securities settlement system]]
+* [[Settlement account]]